ETS — the nonprofit behind the GRE, TOEFL, and Praxis exams — acquired ACT, Inc. on July 1, 2026. No immediate changes are planned for the ACT's format, scoring, or test dates. But the deal raises real questions about where the test is heading, and what students registering for the ACT this fall should know.

On June 30, 2026, ETS announced it had agreed to acquire ACT, Inc., the Iowa City-based company behind one of the two dominant college entrance exams in the United States. The deal closed the following day.

For the 1.38 million students who sat for the ACT in 2025, the message from both organizations is consistent: nothing changes for now.1 Test dates remain on schedule. The format stays the same — including the 2026 update that dropped science from the composite score. Scores will be reported the same way.

But the deal is worth understanding, because it reflects something bigger than a corporate transaction.

Who ETS Is, and Why It Matters

ETS — the Educational Testing Service — is a nonprofit founded in 1947 by the American Council on Education, the Carnegie Foundation for the Advancement of Teaching, and the College Entrance Examination Board. It builds and administers the GRE for graduate school admissions, the TOEFL for international students, and the Praxis Series for teacher licensing. It is one of the largest educational measurement organizations in the world.

The fact that ETS is a nonprofit matters here. ACT spent just two years as a for-profit company before this acquisition returned it to nonprofit stewardship.

What Happened to ACT Before This

In April 2024, ACT, Inc. — a nonprofit for 67 years — was acquired by Nexus Capital Management, a private equity firm. The deal converted ACT into a for-profit public benefit corporation. ACT had been posting significant losses in prior years: a net loss of $60.5 million in fiscal year 2020, followed by losses of $6 million in FY2021 and $12 million in FY2022.2

ETS stepped in two years later. This acquisition effectively closes the for-profit chapter — a detail most headlines skip past.

The Part No One Mentions: State Contracts

The ACT college entrance test gets most of the attention, but ACT's most durable revenue comes from contracts with state governments. At least 17 states use the ACT as an official statewide assessment administered to all public school juniors — not just students applying to college.1 Those governments pay regardless of whether individual students pursue higher education.

ETS already operates in the same government assessment space through Praxis teacher licensing contracts. This acquisition deepens that reach into K-12 statewide testing. The college entrance test is the brand; the state contracts may be the actual business case.

If you have an ACT test date this fall, do not change your plans. ETS and ACT have both confirmed no disruptions to scheduled test dates, scoring, or score reporting. The business ownership changed — the test itself did not.

What Might Change Longer-Term

ETS has signaled interest in shifting toward digital-adaptive and performance-based assessments. ETS CEO Amit Sevak said in the announcement: "Every student deserves a strong education, a fair shot at college, and a path to a good job. Together with ACT, we're determined to serve students and parents along with educators and states by expanding access to education and job opportunities across America."3

That's a vision, not a test-change announcement. But it points toward eventual evolution — likely toward more adaptive digital formats, similar to what the SAT has already done. Any such changes would take years and would come with plenty of advance notice.

Ignore social media claims that the ACT will disappear or be folded into the SAT. ETS and ACT are competitors with the College Board, which owns the SAT. ETS has every incentive to keep the ACT strong as a distinct product and brand.

What to Do Right Now

If you're still deciding between tests, make the choice based on SAT vs. ACT scores — not on business news. Both exams remain fully accepted at every U.S. college that requires testing.

Check ACT test dates for 2026-2027 to map your calendar, and run through some free ACT practice tests to see where you stand. If you want structured help, the best ACT prep courses can shorten your study timeline.

And if you're applying to a test-optional school: data on the surge in voluntary score submissions shows most applicants still send scores when they're strong. Know what counts as a good ACT score before deciding whether to submit yours.

The company that makes your test changed hands. Your preparation doesn't need to.

Footnotes

  1. Wan, T. (2026, June 30). ETS acquires ACT, consolidating two testing giants. Higher Ed Dive. https://www.highereddive.com/news/testing-specialist-ets-acquires-act/824153/ ↩ ↩2

  2. Inside Higher Ed. (2024, April 25). The ACT's private equity takeover and the future of testing. https://www.insidehighered.com/news/admissions/traditional-age/2024/04/25/acts-private-equity-takeover-and-future-testing ↩

  3. ETS. (2026, June 30). ETS acquires ACT, expanding pathways to opportunity across America. PR Newswire. https://www.prnewswire.com/news-releases/ets-acquires-act-expanding-pathways-to-opportunity-across-america-302814592.html ↩